A profit-maximizing, price-taking firm should cease production whenever:
a. the firm is making a loss
b. the firm is earning zero economic profit.
c. the price is less than minimum average fixed cost.
d. the price is less than minimum average variable cost.
d
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Refer to the scenario above. Suppose there are several other bidders in the auction. Roger will win the auction only if ________
A) all the other bidders bid above $625 B) all the other bidders bid below $625 C) all the other bidders are risk-lovers D) all the bidders are risk-averse
The income effect from a fall in the price of a gallon of gasoline is shown in the above figure by the movement from
A) point A to point C. B) point A to point B. C) point B to point C. D) point A to point B and then to point C.
Omitted variables
A) can cause hypothesis tests to be unreliable. B) require multiple regression analyses to find. C) are usually those with t-statistics less than the critical value. D) are usually outside the confidence interval.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. At the end of the day, Tom could have:
A. (16 dishes, 4 fences) or (8 dishes, 2 fences). B. (8 dishes, 2 fences), or (4 dishes, 6 fences). C. (8 dishes, 2 fences), or (4 dishes, 3 fences). D. (12 dishes, 3 fences), or (8 dishes, 3 fences).